diff --git a/iib/web/api_v1.py b/iib/web/api_v1.py
index 41a368522..4293e2604 100644
--- a/iib/web/api_v1.py
+++ b/iib/web/api_v1.py
@@ -1090,6 +1090,7 @@ def merge_index_image() -> Tuple[flask.Response, int]:
         request.distribution_scope,
         flask.current_app.config['IIB_BINARY_IMAGE_CONFIG'],
         payload.get('build_tags', []),
+        payload.get('graph_update_mode'),
     ]
     safe_args = _get_safe_args(args, payload)
 
diff --git a/iib/web/iib_static_types.py b/iib/web/iib_static_types.py
index da5dd4989..67514da74 100644
--- a/iib/web/iib_static_types.py
+++ b/iib/web/iib_static_types.py
@@ -162,6 +162,7 @@ class MergeIndexImagesPayload(TypedDict):
     build_tags: NotRequired[List[str]]
     deprecation_list: NotRequired[List[str]]
     distribution_scope: NotRequired[str]
+    graph_update_mode: NotRequired[GRAPH_MODE_LITERAL]
     overwrite_target_index: NotRequired[bool]
     overwrite_target_index_token: NotRequired[str]
     source_from_index: str
@@ -389,6 +390,7 @@ class MergeIndexImageRequestResponse(APIPartImageBuildRequestResponse):
     build_tags: List[str]
     deprecation_list: List[str]
     distribution_scope: str
+    graph_update_mode: GRAPH_MODE_LITERAL
     index_image: Optional[str]
     source_from_index: str
     source_from_index_resolved: Optional[str]
diff --git a/iib/web/migrations/versions/9e9d4f9730c8_merge_graph_update.py b/iib/web/migrations/versions/9e9d4f9730c8_merge_graph_update.py
new file mode 100644
index 000000000..00b39ad1e
--- /dev/null
+++ b/iib/web/migrations/versions/9e9d4f9730c8_merge_graph_update.py
@@ -0,0 +1,32 @@
+"""Adding graph_update_mode to merge index request.
+
+Revision ID: 9e9d4f9730c8
+Revises: 7346beaff092
+Create Date: 2023-10-17 11:11:10.558335
+
+"""
+from alembic import op
+import sqlalchemy as sa
+
+
+# revision identifiers, used by Alembic.
+revision = '9e9d4f9730c8'
+down_revision = '7346beaff092'
+branch_labels = None
+depends_on = None
+
+
+def upgrade():
+    # ### commands auto generated by Alembic - please adjust! ###
+    with op.batch_alter_table('request_merge_index_image', schema=None) as batch_op:
+        batch_op.add_column(sa.Column('graph_update_mode', sa.String(), nullable=True))
+
+    # ### end Alembic commands ###
+
+
+def downgrade():
+    # ### commands auto generated by Alembic - please adjust! ###
+    with op.batch_alter_table('request_merge_index_image', schema=None) as batch_op:
+        batch_op.drop_column('graph_update_mode')
+
+    # ### end Alembic commands ###
diff --git a/iib/web/models.py b/iib/web/models.py
index f9c3ddcf8..ea172fde5 100644
--- a/iib/web/models.py
+++ b/iib/web/models.py
@@ -775,6 +775,30 @@ def get_request_query_options(verbose: Optional[bool] = False) -> List[_Abstract
     return query_options
 
 
+def validate_graph_mode(graph_update_mode: Optional[str], index_image: Optional[str]):
+    """
+    Validate graph mode and check if index image is allowed to use different graph mode.
+
+    :param str graph_update_mode: one of the graph mode options
+    :param str index_image: pullspec of index image to which graph mode should be applied to
+    :raises: ValidationError when incorrect graph_update_mode is set
+    :raises: Forbidden when graph_mode can't be used for given index image
+
+    """
+    if graph_update_mode:
+        graph_mode_options = current_app.config['IIB_GRAPH_MODE_OPTIONS']
+        if graph_update_mode not in graph_mode_options:
+            raise ValidationError(
+                f'"graph_update_mode" must be set to one of these: {graph_mode_options}'
+            )
+        allowed_from_indexes: List[str] = current_app.config['IIB_GRAPH_MODE_INDEX_ALLOW_LIST']
+        if index_image not in allowed_from_indexes:
+            raise Forbidden(
+                '"graph_update_mode" can only be used on the'
+                f' following index image: {allowed_from_indexes}'
+            )
+
+
 class RequestIndexImageMixin:
     """
     A class for shared functionality between index image requests.
@@ -1110,19 +1134,7 @@ def from_json(  # type: ignore[override] # noqa: F821
                 raise ValidationError(f'"{param}" must be a string')
 
             if param == 'graph_update_mode':
-                graph_mode_options = current_app.config['IIB_GRAPH_MODE_OPTIONS']
-                if request_kwargs[param] not in graph_mode_options:
-                    raise ValidationError(
-                        f'"{param}" must be set to one of these: {graph_mode_options}'
-                    )
-                allowed_from_indexes: List[str] = current_app.config[
-                    'IIB_GRAPH_MODE_INDEX_ALLOW_LIST'
-                ]
-                if request_kwargs.get('from_index') not in allowed_from_indexes:
-                    raise Forbidden(
-                        '"graph_update_mode" can only be used on the'
-                        f' following "from_index" pullspecs: {allowed_from_indexes}'
-                    )
+                validate_graph_mode(request_kwargs[param], request_kwargs.get('from_index'))
 
         if not isinstance(request_kwargs.get('force_backport', False), bool):
             raise ValidationError('"force_backport" must be a boolean')
@@ -1498,6 +1510,7 @@ class RequestMergeIndexImage(Request):
         'Image', foreign_keys=[target_index_resolved_id], uselist=False
     )
     distribution_scope: Mapped[Optional[str]]
+    graph_update_mode: Mapped[Optional[str]]
 
     __mapper_args__ = {
         'polymorphic_identity': RequestTypeMapping.__members__['merge_index_image'].value
@@ -1536,6 +1549,9 @@ def from_json(  # type: ignore[override] # noqa: F821
             pull_specification=source_from_index
         )
 
+        graph_update_mode = request_kwargs.get('graph_update_mode')
+        validate_graph_mode(graph_update_mode, request_kwargs.get('target_index'))
+
         target_index = request_kwargs.pop('target_index', None)
         if target_index:
             if not isinstance(target_index, str):
@@ -1623,6 +1639,7 @@ def to_json(self, verbose: Optional[bool] = True) -> MergeIndexImageRequestRespo
             self.binary_image_resolved, 'pull_specification', None
         )
         rv['deprecation_list'] = [bundle.pull_specification for bundle in self.deprecation_list]
+        rv['graph_update_mode'] = self.graph_update_mode
         rv['index_image'] = getattr(self.index_image, 'pull_specification', None)
         rv['source_from_index'] = self.source_from_index.pull_specification
         rv['source_from_index_resolved'] = getattr(
diff --git a/iib/web/static/api_v1.yaml b/iib/web/static/api_v1.yaml
index 94b02d3b3..5450390dc 100644
--- a/iib/web/static/api_v1.yaml
+++ b/iib/web/static/api_v1.yaml
@@ -1338,6 +1338,14 @@ components:
                 This determined what level of protection the addition or removal had.
               type: string
               example: 'prod'
+            graph_update_mode:
+              type: string
+              description: >
+                Graph update mode that defines how channel graphs are updated in the index. It must be one
+                of "replaces", "semver" or "semver-skippatch". This attribute can only be used on index
+                image pull specs configured in IIB_GRAPH_MODE_INDEX_ALLOW_LIST in the IIB API Config. If not
+                specified, "--mode" will not be added to OPM commands to add the bundle(s) to the index.
+              default: None
     RequestCreateEmptyIndex:
       type: object
       properties:
diff --git a/iib/workers/tasks/build_merge_index_image.py b/iib/workers/tasks/build_merge_index_image.py
index 0970dab29..54e98cfb3 100644
--- a/iib/workers/tasks/build_merge_index_image.py
+++ b/iib/workers/tasks/build_merge_index_image.py
@@ -60,6 +60,7 @@ def _add_bundles_missing_in_source(
     arch: str,
     ocp_version: str,
     distribution_scope: str,
+    graph_update_mode: Optional[str] = None,
     target_index=None,
     overwrite_target_index_token: Optional[str] = None,
 ) -> Tuple[List[BundleImage], List[BundleImage]]:
@@ -77,6 +78,8 @@ def _add_bundles_missing_in_source(
     :param int request_id: the ID of the IIB build request.
     :param str arch: the architecture to build this image for.
     :param str ocp_version: ocp version which will be added as a label to the image.
+    :param str graph_update_mode: Graph update mode that defines how channel graphs are updated
+        in the index.
     :param str target_index: the pull specification of the container image
     :param str overwrite_target_index_token: the token used for overwriting the input
         ``source_from_index`` image. This is required to use ``overwrite_target_index``.
@@ -138,6 +141,7 @@ def _add_bundles_missing_in_source(
                 bundles=missing_bundle_paths,
                 binary_image=binary_image,
                 from_index=source_from_index,
+                graph_update_mode=graph_update_mode,
                 container_tool='podman',
             )
         else:
@@ -146,6 +150,7 @@ def _add_bundles_missing_in_source(
                 bundles=missing_bundle_paths,
                 binary_image=binary_image,
                 from_index=source_from_index,
+                graph_update_mode=graph_update_mode,
                 # Use podman until opm's default mechanism is more resilient:
                 #   https://bugzilla.redhat.com/show_bug.cgi?id=1937097
                 container_tool='podman',
@@ -179,6 +184,7 @@ def handle_merge_request(
     distribution_scope: Optional[str] = None,
     binary_image_config: Optional[str] = None,
     build_tags: Optional[List[str]] = None,
+    graph_update_mode: Optional[str] = None,
 ) -> None:
     """
     Coordinate the work needed to merge old (N) index image with new (N+1) index image.
@@ -199,6 +205,8 @@ def handle_merge_request(
     :param str distribution_scope: the scope for distribution of the index image, defaults to
         ``None``.
     :param build_tags: list of extra tag to use for intermetdiate index image
+    :param str graph_update_mode: Graph update mode that defines how channel graphs are updated
+        in the index.
     :raises IIBError: if the index image merge fails.
     """
     _cleanup()
@@ -265,6 +273,7 @@ def handle_merge_request(
             request_id=request_id,
             arch=arch,
             ocp_version=prebuild_info['target_ocp_version'],
+            graph_update_mode=graph_update_mode,
             target_index=target_index,
             overwrite_target_index_token=overwrite_target_index_token,
             distribution_scope=prebuild_info['distribution_scope'],
diff --git a/tests/test_web/test_api_v1.py b/tests/test_web/test_api_v1.py
index 6202d83cf..2c840be3b 100644
--- a/tests/test_web/test_api_v1.py
+++ b/tests/test_web/test_api_v1.py
@@ -578,7 +578,7 @@ def test_add_bundles_graph_update_mode_not_allowed(
     assert rv.status_code == 403
     error_msg = (
         '"graph_update_mode" can only be used on the'
-        ' following "from_index" pullspecs: [\'some-unique-index\']'
+        ' following index image: [\'some-unique-index\']'
     )
     assert error_msg == rv.json['error']
     mock_smfsc.assert_not_called()
@@ -1937,14 +1937,16 @@ def test_regenerate_add_rm_batch_invalid_input(payload, error_msg, app, auth_env
 @mock.patch('iib.web.api_v1.handle_merge_request')
 @mock.patch('iib.web.api_v1.messaging.send_message_for_state_change')
 def test_merge_index_image_success(
-    mock_smfsc, mock_merge, db, auth_env, client, distribution_scope
+    mock_smfsc, mock_merge, app, db, auth_env, client, distribution_scope
 ):
+    app.config['IIB_GRAPH_MODE_INDEX_ALLOW_LIST'] = 'target_index:image'
     data = {
         'deprecation_list': ['some@sha256:bundle'],
         'binary_image': 'binary:image',
         'source_from_index': 'source_index:image',
         'target_index': 'target_index:image',
         'build_tags': [],
+        'graph_update_mode': 'semver',
     }
 
     if distribution_scope:
@@ -1959,6 +1961,7 @@ def test_merge_index_image_success(
         'build_tags': [],
         'deprecation_list': ['some@sha256:bundle'],
         'distribution_scope': distribution_scope,
+        'graph_update_mode': 'semver',
         'id': 1,
         'index_image': None,
         'logs': {
@@ -1998,12 +2001,14 @@ def test_merge_index_image_success(
 def test_merge_index_image_overwrite_token_redacted(
     mock_smfsc, mock_merge, app, auth_env, client, db
 ):
+    app.config['IIB_GRAPH_MODE_INDEX_ALLOW_LIST'] = 'target_index:image'
     token = 'username:password'
     data = {
         'deprecation_list': ['some@sha256:bundle'],
         'binary_image': 'binary:image',
         'source_from_index': 'source_index:image',
         'target_index': 'target_index:image',
+        'graph_update_mode': 'replaces',
         'overwrite_target_index': True,
         'overwrite_target_index_token': token,
     }
@@ -2054,12 +2059,14 @@ def test_merge_index_image_custom_user_queue(
     overwrite_from_index,
     expected_queue,
 ):
+    app.config['IIB_GRAPH_MODE_INDEX_ALLOW_LIST'] = 'target_index:image'
     app.config['IIB_USER_TO_QUEUE'] = user_to_queue
     data = {
         'deprecation_list': ['some@sha256:bundle'],
         'binary_image': 'binary:image',
         'source_from_index': 'source_index:image',
         'target_index': 'target_index:image',
+        'graph_update_mode': 'replaces',
     }
     if overwrite_from_index:
         data['overwrite_target_index'] = True
diff --git a/tests/test_workers/test_tasks/test_build_merge_index_image.py b/tests/test_workers/test_tasks/test_build_merge_index_image.py
index f75decaf3..124f79721 100644
--- a/tests/test_workers/test_tasks/test_build_merge_index_image.py
+++ b/tests/test_workers/test_tasks/test_build_merge_index_image.py
@@ -400,6 +400,7 @@ def test_add_bundles_missing_in_source(
         'amd64',
         '4.6',
         'dev',
+        'replaces',
     )
     assert missing_bundles == [
         {
@@ -436,6 +437,7 @@ def test_add_bundles_missing_in_source(
         binary_image='binary-image:4.5',
         from_index='index-image:4.6',
         container_tool='podman',
+        graph_update_mode='replaces',
     )
     assert mock_gil.call_count == 5
     assert mock_aolti.call_count == 2
@@ -545,6 +547,7 @@ def test_add_bundles_missing_in_source_error_tag_specified(
             'amd64',
             '4.6',
             'dev',
+            'semver',
         )
 
 
@@ -611,6 +614,7 @@ def test_add_bundles_missing_in_source_none_missing(
         'amd64',
         '4.6',
         'dev',
+        'semver',
     )
     assert missing_bundles == []
     assert invalid_bundles == [
@@ -634,6 +638,7 @@ def test_add_bundles_missing_in_source_none_missing(
         binary_image='binary-image:4.5',
         from_index='index-image:4.6',
         container_tool='podman',
+        graph_update_mode='semver',
     )
     assert mock_gil.call_count == 4
     assert mock_aolti.call_count == 2